So, what do we think of Obama’s proposal for “myRA” retirement accounts?

posted at 6:41 pm on January 29, 2014 by Allahpundit

Lay aside your understandable assumption on economic matters that if O’s for it, it’s probably a bad idea. Is this, objectively, a bad idea? CNN Money and, especially, CNBC have nifty primers on the myRA ground rules. It’s an IRA aimed at the lower class, promising them a guaranteed return to entice them into parting with scarce funds they might not otherwise be willing to invest. The minimum initial investment is just 25 bucks and the choice of investments is limited to U.S. government securities so that there’s no risk of loss. (Well, sort of. More on that in a sec.) Essentially, it’s like having a Roth IRA consisting of nothing but savings bonds. If/when the account hits $15,000, it rolls over into a plain ol’ Roth IRA and you’re free to invest in the broader market from there. And although these will be offered through one’s job, it’ll cost an employer nothing to do so. The feds will handle the expense of administering the accounts in order to encourage businesses to make them available to workers. The grand idea, I believe, is simply to encourage saving for retirement even among the poor and working class, especially blacks and Latinos:

More often than not, blacks and Latinos benefit little from the tax breaks and other policy initiatives aimed at bolstering retirement security because they typically have no money to save for retirement in IRAs and other vehicles outside the workplace, according to Diane Oakley, executive director of the National Institute on Retirement Security (NIRS), which conducted the study. In addition, they are much less likely than whites to have defined-benefit pensions, particularly outside of public sector jobs.

“Those are startling findings,” Oakley said. “The typical household of color has nothing saved in a retirement account.”…

The NIRS report said that among households headed by blacks and hispanics between the ages of 55 and 64, the average retirement savings account balance was $30,000. Among whites on the verge of retirement, it was $120,000. Meanwhile, investment and human resource firms typically recommend that retirees have assets worth anywhere from eighth to 11 times their annual wages in order to adequately prepare for old age.

A key point made in that same WaPo report: As states scale back pensions and the feds start to cope with the inevitable entitlements crisis, encouraging people to save who otherwise might not makes fiscal sense. Plus, if it catches on as a “starter IRA,” it should — and actually will, per the $15,000 cap — lead eventually to broader public interest in private markets. After all, as the CNBC piece linked above points out, O’s assurance that the principal is “guaranteed” doesn’t mean that the purchasing power of your hard-earned dollar is:

The problem with that strategy is that you’ll give up a substantial return. Since the Federal Reserve collapsed interest rates to save the financial system five years ago, the return on a short-term Treasury bonds hasn’t even kept up with inflation.

With a MyRa account, your money will be invested in the Government Securities Investment Fund available to federal workers. That fund has an average annual return for the past three years of 2.24 percent. As of December, the average annual inflation rate for consumer prices over the past three years was 2.07 percent.

As some myRA holders come to realize that, they’ll look to transition relatively quickly to private investments and a regular IRA. The myRA should, in theory, simply be their entrance to the stock market. It’s a baby step, but better that than proposing a new entitlement.

Two questions, though. One: How many people will this attract, realistically? Just 24 percent of the public is confident in the stock market as place to save for retirement, according to one recent survey. That’s part of the appeal of the myRA, especially to groups that are more pro-government on balance in the first place — if another financial crisis hits, your money’s still safe — but Treasury rates are so low that it’s anyone’s guess how much encouragement a two-percent return will provide to people who are living paycheck to paycheck. Two: Related to the last point, if the goal here is to help the poor, why treat the myRA as a Roth IRA? Why not make it tax-free on both ends, like a traditional IRA when the money’s deposited and a Roth when it’s finally withdrawn in retirement? If you’re worried about too many middle-class and upper-class people using that as a tax shelter, you could impose an income cap for tax-free treatment. The lost tax revenue would likely be chump change relatively to the size of federal spending.

Update: A good point from Heritage: The myRA isn’t limited by regulation to lower-income workers. On the contrary, the income cap for a household to qualify is $191,000. Even upper-middle-class people can open one if they like. But … why would they? It’s inferior to a regular Roth IRA in every way. If you’re too risk-averse to invest in private companies, you can just use your Roth to buy a basket of government securities. The point of the myRA, I think, is simply to catch the attention of people who otherwise wouldn’t think twice about saving for retirement. The higher you go up the income ladder, the fewer of those people there are likely to be.


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Comment pages: 1 2

Is there anything in the provisions for this thing that says “If you like your current IRA, you can keep your IRA?”

oldroy on January 29, 2014 at 6:44 PM

Allahpundit, where is the HotAir coverage of Mike Lee’s tea party response to the State of the Union?

I hope it is forthcoming, unless I missed it already.

bluegill on January 29, 2014 at 6:45 PM

Let’s see: Spend it now, or spend it when we’ve become Zimbabwe.

Decisions, decisions…

Lanceman on January 29, 2014 at 6:45 PM

I thought IRAs were aimed at the “lower classes” (whatever that means – lower income, presumably, but rather elitist terminology). I know that the feds in all of their wisdom don’t let me use it.

besser tot als rot on January 29, 2014 at 6:46 PM

I wouldn’t trust the government any further than I can throw it. Left handed with that arm in a cast.

DanMan on January 29, 2014 at 6:47 PM

Won’t this drive returns on treasuries even lower as more money floods the market to invest in them?

Mark1971 on January 29, 2014 at 6:47 PM

Oh, wait. Lower classes. Yeah, go for it, rubes. After all, you voted for him. Get summa that stash money.

Lanceman on January 29, 2014 at 6:48 PM

feint to grab 401′s

dmacleo on January 29, 2014 at 6:49 PM

Just let ME have MY Social Security that you’re stealing from me each paycheck.

SouthernGent on January 29, 2014 at 6:50 PM

Isn’t this similar to Bush’s idea?

Remember the outrage from the left?

cmsinaz on January 29, 2014 at 6:54 PM

Check the routing number to the “MyRa” account.

It sounds like a Nigerian Banking Scheme.

portlandon on January 29, 2014 at 6:54 PM

So, what do we think of Obama’s proposal for “myRA” retirement accounts?

Just another government scam to get ahold of our money.
I may convert my IRA’s to buy toilet paper, ammo and whisky….

redguy on January 29, 2014 at 6:55 PM

It sounds like a Nigerian Banking Scheme.

portlandon on January 29, 2014 at 6:54 PM

That’s near Kenya, innit?

Lanceman on January 29, 2014 at 6:55 PM

Instead of all this bother, why don’t they just make SocSec benefits “estate-able” so that you can pass them on to your heirs as you would any other investment account?
Of course, that may be too big of a benefit to Black Males, who seem to have a bad habit of dying early, and it would contradict the history of the Progressives in keeping Minorities on-the-plantation.

Another Drew on January 29, 2014 at 6:56 PM

Just let ME have MY Social Security that you’re stealing from me each paycheck.

SouthernGent on January 29, 2014 at 6:50 PM

Yeah, I only “took home” $5800 last year….damn it was such a lousy year /s, the IRS did not get much of my money, nudge, nudge, wink – if you know what I mean?

redguy on January 29, 2014 at 6:57 PM

Low-income people are unlikely to set aside money for retirement if the investment only earns 0.17% above inflation. The government would have to sweeten the pot either by offering a higher interest rate on funds invested in savings bonds, or offering a tax credit on the way in.

But with all the Quantitative Easing 3 or 4 or however many times the Fed has renewed it, why would the Government want to pay higher interest on poor people’s money when it can borrow for free from the Fed?

Steve Z on January 29, 2014 at 6:57 PM

This is just the plantation owner announcing to the slaves that he’s happy to hold some of their earnings for a rainy day.

Wise idea?

It’s just another reason non-whites need to have it beat into them that getting a good education is NOT “acting white.” Indeed, getting a good education and, as part of that, getting increasing financial education is “acting to promote your green.”

Seriously, this akin to a child sticking his allowance in a piggy bank controlled by the kid’s parents. For crying out loud, as a matter of rearing kids, most parents allow their kids to learn to handle their allowance on their own.

This is pathetically patriarchal.

BuckeyeSam on January 29, 2014 at 6:59 PM

I have a word for those who would start a “My”RA – SUCKERS!!!!!

Steve Eggleston on January 29, 2014 at 7:00 PM

In addition, they are much less likely than whites to have defined-benefit pensions, particularly outside of public sector jobs.

Is anyone likely to have a defined-benefit plan anymore outside of the public sector? I mean, besides heavily-unionized jobs and criminal rackets (but I repeat myself).

KingGold on January 29, 2014 at 7:00 PM

Won’t this drive returns on treasuries even lower as more money floods the market to invest in them?

Mark1971 on January 29, 2014 at 6:47 PM

That’s the plan. Now that QE-Forever is starting to slow down (cut from $85 billion/month to $75 billion/month, with the expected drop in the stock markets), something has to be in place to keep the cost of deficit spending down.

Steve Eggleston on January 29, 2014 at 7:01 PM

Wait, Mooch launched this idea a day earlier with her “Send me $10 to save Obama Care’ thing…

BigWyo on January 29, 2014 at 7:02 PM

How exactly is this something the Feds should be involved in?

hopeful on January 29, 2014 at 7:03 PM

If the poor are struggling paycheck to paycheck, how are they going to afford to sock away even a little bit of money?

BKeyser on January 29, 2014 at 7:03 PM

Wait, Mooch launched this idea a day earlier with her “Send me $10 to save Obama Care’ thing…

BigWyo on January 29, 2014 at 7:02 PM

And you can be sure that’s where it’ll be spent. Like the SS lockbox.

Lanceman on January 29, 2014 at 7:04 PM

More red meat for the LIVs.

CWchangedhisNicagain on January 29, 2014 at 7:04 PM

Is anyone likely to have a defined-benefit plan anymore outside of the public sector? I mean, besides heavily-unionized jobs and criminal rackets (but I repeat myself).

KingGold on January 29, 2014 at 7:00 PM

You repeated yourself more than you know.

Steve Eggleston on January 29, 2014 at 7:04 PM

Think if Obama was a Republican, coming off the disaster of the ACA. The media would be rolling on the floor in mockery.

The guy that screwed up your healthcare now wants to help you manage your retirement savings.

But we have a corrupt media so they will leave that softball on the tee.

kevinkristy on January 29, 2014 at 7:04 PM

Did you say through your JOB ? What’s that?

d1carter on January 29, 2014 at 7:04 PM

If the poor are struggling paycheck to paycheck, how are they going to afford to sock away even a little bit of money?

BKeyser on January 29, 2014 at 7:03 PM

The price of dope coming down will compensate.

Lanceman on January 29, 2014 at 7:05 PM

After paying for new insurance premiums and the deductibles, what money is left over for a myRA?

rbj on January 29, 2014 at 7:05 PM

“If you like your 401K … you can keep your 401K.”

Come on Allah … you can’t believe that Obama can be trusted with even MORE of our money!

If it goes to DC – it gets spent – redistributed … just like the bankrupt social security system.

And bank this – the DIMs will outlaw 401K’s and IRA’s and force us all to use these MyRAs.

Bank it.

HondaV65 on January 29, 2014 at 7:05 PM

The feds will handle the expense of administering the accounts in order to encourage businesses to make them available to workers.

No the Fed will take money away from my paycheck to administer these non-existent accounts and create another redundant Federal Bureaucracy.

After all, we have been told over and over that poor people are living paycheck to paycheck and have exactly ZERO dollars left over at the end of the week. That’s why we need to raise the minimum wage, so they wont starve.

Johnnyreb on January 29, 2014 at 7:07 PM

As of December, the average annual inflation rate for consumer prices over the past three years was 2.07 percent.

Soviet-era Pravda had far more credibility than does the present-day U.S. government (and their phony, eventually-to-be-worthless securities) …

ShainS on January 29, 2014 at 7:08 PM

Another way to collect Obamacare fines for those who don’t enroll. Just raid their myRA instead of waiting to see if they are due a tax refund.

innominatus on January 29, 2014 at 7:09 PM

Probably thought up by Harvard/Stanford economists.

Which means in 20 years it’ll be another government run scam/sinkhole bureaucratic drain on the economy, needing a bailout.

That’s all government creates anymore.

MichaelGabriel on January 29, 2014 at 7:09 PM

When the FED pulls the rug out from under the Stock market it will crash and then Obama will ride to the rescue and offer to make them whole with MYRA bonds. It’s a ruse to steal nearly every retirement account in the country.

DFCtomm on January 29, 2014 at 7:11 PM

Meatloaf recipes on the back of each deposit slip.

rogerb on January 29, 2014 at 7:11 PM

Two questions, though. One: How many people will this attract, realistically? Just 24 percent of the public is confident in the stock market as place to save for retirement, according to one recent survey. That’s part of the appeal of the myRA, especially to groups that are more pro-government on balance in the first place — if another financial crisis hits, your money’s still safe — but Treasury rates are so low that it’s anyone’s guess how much encouragement a two-percent return will provide to people who are living paycheck to paycheck. Two: Related to the last point, if the goal here is to help the poor, why treat the myRA as a Roth IRA? Why not make it tax-free on both ends, like a traditional IRA when the money’s deposited and a Roth when it’s finally withdrawn in retirement? If you’re worried about too many middle-class and upper-class people using that as a tax shelter, you could impose an income cap for tax-free treatment. The lost tax revenue would likely be chump change relatively to the size of federal spending.

1. Not many at all. Sure, a few people will be suckered in by the “my” part, but those who are smart enough to save for their retirement are doing so through better means.

2. Have you ever known government to voluntarily leave tax money on the table?

Steve Eggleston on January 29, 2014 at 7:12 PM

If the poor are struggling paycheck to paycheck, how are they going to afford to sock away even a little bit of money?
BKeyser on January 29, 2014 at 7:03 PM

You’re going to give it to them, silly. Where have you been the last six years?

Look, if the Marxist Traitor/Tyrant told me to leave a burning building I would go looking for the fire first.

I do not trust anything that he says, I do not agree with anything he says, I am inclined to the exact opposite of what he wants.

I have nothing but contempt for him.

turfmann on January 29, 2014 at 7:12 PM

Will someone need an ID to open one of these?

rogerb on January 29, 2014 at 7:13 PM

And bank this – the DIMs will outlaw 401K’s and IRA’s and force us all to use these MyRAs.

Bank it.

HondaV65 on January 29, 2014 at 7:05 PM

And that comes with a better guarantee than the FDIC.

Steve Eggleston on January 29, 2014 at 7:13 PM

No the Fed will take money away from my paycheck to administer these non-existent accounts and create another redundant Federal Bureaucracy.

Johnnyreb on January 29, 2014 at 7:07 PM

When SS finally goes tits up they will simply roll the two programs together, since both are public administered retirement funds. It’s a theft and a bailout all rolled into one. You might even say it’s comprehensive.

DFCtomm on January 29, 2014 at 7:14 PM

Meatloaf recipes on the back of each deposit slip.

rogerb on January 29, 2014 at 7:11 PM

Oh dear!

Hold on. Give me 10 minutes.

Lanceman on January 29, 2014 at 7:14 PM

I mean, I do think at a certain point you’ve saved enough money.

rogerb on January 29, 2014 at 7:16 PM

And bank this – the DIMs will outlaw 401K’s and IRA’s and force us all to use these MyRAs.

Bank it.

HondaV65 on January 29, 2014 at 7:05 PM

No need to force, most will be more than willing to take the worthless bonds for what remains of the 401s and retirement funds. Backed by the full faith and credit of the U.S. government.

DFCtomm on January 29, 2014 at 7:16 PM

I mean, I do think at a certain point you’ve saved enough money.

rogerb on January 29, 2014 at 7:16 PM

Heh.

I can hear it now: “You didn’t save that!”

ShainS on January 29, 2014 at 7:21 PM

redguy on January 29, 2014 at 6:57 PM

Drone targeting complete. Fire when ready.

Nutstuyu on January 29, 2014 at 7:22 PM

I’ve been giving this some thought here and there throughout the day. There are a couple of questions that I have come away with.

1. why would Barry want to do this? This sort of thing is not his M.O..

2. Knowing that politicians are often working two steps ahead of what they are saying publicly, is this a way to ease these people off of social security, or more accurately to make the impending social security default easier on people? What I mean to say is: is this a way for politicians to prevent a revolution among the poor and lower middle class when the entitlement fairy keels over?

3. How does this fit with the plan that politicians have been whispering about for a few years, where they seize all 401k and IRA accounts and nationalize them, guaranteeing an account balance to a certain date, but taxing and administering the programs publicly from that date forward?

4. I am suspicious of any government program. I am especially suspicious of the politicians that currently hold office in both parties. This savings plan sounds like a good thing. In the end, I’m left wondering; what is the catch?

h a p f a t on January 29, 2014 at 7:23 PM

The feds will handle the expense of administering the accounts in order to encourage businesses to make them available to workers.

“The Feds will handle the expense…” And where do the Feds get their money to handle expenses?

All you need to know is right there.

Now.. by the time this would actually ever get implemented it isn’t going to be what was suggested last night.
The poor will get cushy IRA’s.. paid for by tax payers and they’ll end up not paying anything into them.

JellyToast on January 29, 2014 at 7:24 PM

This feels kind of like the lottery: a tax on people who can’t do math.

Count to 10 on January 29, 2014 at 7:24 PM

“Hmmmmmm”

There’s no “Hmmmmm”. These thieves are only starting to get their foot in the door…next thing you know they’ll be “managing” the stocks, pensions and bonds held by the Proles and pilfer at will.

Dr. ZhivBlago on January 29, 2014 at 7:26 PM

“myRA” is weak in terms of a branded name that’ll resonate with the targeted suckers — er, consumers.

He needs to give this scam — er, product — a name that makes people go, “Oh, yeah. Just from the descriptive, colorful name I know exactly what this scam — er, product — is and what it’s for and how it’s used.”

Suggestions:

– hisRA (your IRA is his property, Obama’s).

– govRA (your IRA is his property, Obama’s).

– obamaRA (I, Obama, am the reincarnated Egyptian sun god, Ra. Kneel before me and give me what’s myRA).

FlameWarrior on January 29, 2014 at 7:29 PM

I’m left wondering; what is the catch?

h a p f a t on January 29, 2014 at 7:23 PM

The catch will be a guaranteed return for those below a certain income level paid for by those above a certain income level. More wealth redistribution.

Ditkaca on January 29, 2014 at 7:29 PM

Will someone need an ID to open one of these?

rogerb on January 29, 2014 at 7:13 PM

I had a feeling these were racist!

freedomfirst on January 29, 2014 at 7:32 PM

Is anyone likely to have a defined-benefit plan anymore outside of the public sector? I mean, besides heavily-unionized jobs and criminal rackets (but I repeat myself).

KingGold on January 29, 2014 at 7:00 PM

Exactly.

Obysmal has made several trips to tout himself and his ideas to the Irvin Works plant, which is heavily unionized. Who is promoting his visits there with such frequency and why?

onlineanalyst on January 29, 2014 at 7:38 PM

Although any raising of the minimum wage may result in fewer job opportunities for them, this plan might be a good product for those ages 14-18 to start savings for retirement with no fees and the ability to switch to more aggressive investments when they are older and wiser about investments.

A.S.R. on January 29, 2014 at 7:44 PM

This savings plan sounds like a good thing. In the end, I’m left wondering; what is the catch?

h a p f a t on January 29, 2014 at 7:23 PM

With all due respect, this sounds like a rotten thing to me. Just allow people to go to the bank and open an IRA with a low balance and low monthly payments. Make it all tax deferred (or tax free). Do it privately. I don’t trust govt to manage this.

freedomfirst on January 29, 2014 at 7:47 PM

So, what do we think of Obama’s proposal for “myRA” retirement accounts?

THAT, plus you Social Security will get you a cup of coffee.

WryTrvllr on January 29, 2014 at 7:49 PM

This…

“If you like your 401K … you can keep your 401K.”

Come on Allah … you can’t believe that Obama can be trusted with even MORE of our money!

If it goes to DC – it gets spent – redistributed … just like the bankrupt social security system.

And bank this – the DIMs will outlaw 401K’s and IRA’s and force us all to use these MyRAs.

Bank it.

HondaV65 on January 29, 2014 at 7:05 PM

And this…

When the FED pulls the rug out from under the Stock market it will crash and then Obama will ride to the rescue and offer to make them whole with MYRA bonds. It’s a ruse to steal nearly every retirement account in the country.

DFCtomm on January 29, 2014 at 7:11 PM

Fixed.

GrannyDee on January 29, 2014 at 7:49 PM

A.S.R. on January 29, 2014 at 7:44 PM

And I don’t know who you are or where you came from but your rookie mistake is accepting the premise as benevolent.

Lanceman on January 29, 2014 at 7:49 PM

The feds will handle the expense of administering the accounts in order to encourage businesses to make them available to workers.

So, that’s like free, right? Like, no one has to pay for those feds?

Just Win-Win, baby!

Marcola on January 29, 2014 at 7:51 PM

what happens when the treasury rates go up? The 10 year is at 2.6 percent roughly…the principle goes down if the 10s ever go back up to say 4.

i know that the left believes that this is a new normal, where central planning and control can manage the economy 4EVR….and who knows, maybe so…just maybe the world wide command and control systems will actually create a world of zirp..and neg real rates (which is basically a wealth tax

btw…the left has now broadcasted a newly found feature of barry.care.

http://finance.yahoo.com/news/big-impact-income-gap-health-law-39-angle-202117764–finance.html

barry has already helped the income gap by barry.care…low income people get an extra 6 percent…and higher income people have less income. Yay for Barry….helping them poor folk every day and every way.. Who knew he was soooooooo bright????????

r keller on January 29, 2014 at 7:52 PM

The grand idea, I believe, is simply to encourage saving for retirement even among the poor and working class, especially blacks and Latinos:

which means, when the whole system goes belly up at, say, aroung 40 trillion national debt, They get the UAW treatment compared to the rest of the bond holders.

WryTrvllr on January 29, 2014 at 7:52 PM

What’s this ‘retirement fund’ they speak of ?

pambi on January 29, 2014 at 7:54 PM

This savings plan sounds like a good thing. In the end, I’m left wondering; what is the catch?
 
h a p f a t on January 29, 2014 at 7:23 PM

 
With all due respect, this sounds like a rotten thing to me. Just allow people to go to the bank and open an IRA with a low balance and low monthly payments. Make it all tax deferred (or tax free). Do it privately. I don’t trust govt to manage this.
 
freedomfirst on January 29, 2014 at 7:47 PM

 
I’m fairly sure this is catered to the people who frequent check-cashing businesses. Frankly, I wouldn’t doubt if this administration finds a way to match contributions (or worse).
 
White folks’ greed etc.

rogerb on January 29, 2014 at 7:56 PM

What’s this ‘retirement fund’ they speak of ?

pambi on January 29, 2014 at 7:54 PM

Hi, Pambi. Long time, no talk.

How are you?????

(((waving)))

GrannyDee on January 29, 2014 at 7:56 PM

If our pubic school system actually taught students the in and ouots of capitalism, free markets, general economics and the value of a dollar, perhaps the hood rats, the meth heads and ignorant working class could create wealth through savings.

Ain’t gonna happen.

rickyricardo on January 29, 2014 at 7:56 PM

The point of the myRA, I think, is simply to catch the attention of people who otherwise wouldn’t think twice about saving for retirement. buy time before the government has to pull a Cyprus or Poland, giving time for their friends to get their funds out.

FIFY

Let’s hope there are enough muppets.

WryTrvllr on January 29, 2014 at 7:58 PM

The Catch? the “Guaranteed” return, not “market” return. Somebody will be subsidizing all these “Guarantees”

WisRich on January 29, 2014 at 8:00 PM

myRA…. invest in the Kleptocracy…. what could go wrong!

roflmmfao

donabernathy on January 29, 2014 at 8:02 PM

Waves to Granny !! All’s good, here, thanks !
Dreaming of Spring. ;-)
You ??

pambi on January 29, 2014 at 8:02 PM

When can we start calling it ObamyRA?

And, will it be “racist”?

Fallon on January 29, 2014 at 8:05 PM

myRA would that be the 57th State Barry visits on his unicorn that poops Skittles.

roflmmfao

donabernathy on January 29, 2014 at 8:07 PM

My O Myra

http://2.bp.blogspot.com/-QUeFvPh0br4/UUY1DcD5X9I/AAAAAAAACkE/VlI1wHUlL-k/s1600/obama+in+drag+fat+ass.jpg

that’s about right.

roflmmfao

donabernathy on January 29, 2014 at 8:10 PM

pambi on January 29, 2014 at 8:02 PM

Dreaming of Spring here, too. We’ve got about a foot and a half of hard-pack snow on the ground and temps at night anywhere from -20 to -40 with the wind chill. Soooooo cold. We have to rush our little dog in and out, otherwise his paws start to freeze.

So I’m looking through flower catalogs, trying to decide what I want planted in our newly designed flower beds this year. Can’t wait, but too many beautiful plants to choose from.

Celebrated the BIG 65 a few weeks ago. I’m still in shock over how quickly my life has flown by.

Other than having that DITWH (dolt in the White House) life is pretty good.

GrannyDee on January 29, 2014 at 8:12 PM

Can I use my EBT card to fund my myRA?

Thanks.

NoPain on January 29, 2014 at 8:13 PM

the azz clown is just try’n to steal poor people’s weekly Powerball money. How cheeky can ya get….Barry!

roflmmfao

donabernathy on January 29, 2014 at 8:19 PM

Why not make it tax-free on both ends, like a traditional IRA when the money’s deposited and a Roth when it’s finally withdrawn in retirement? If you’re worried about too many middle-class and upper-class people using that as a tax shelter, you could impose an income cap for tax-free treatment. The lost tax revenue would likely be chump change relatively to the size of federal spending.

I think it’s a great idea for low income people. Savvy upper and middle class people are using real estate as an investment.

You can get anywhere from an eight to twelve percent simple return with access to equity sharing if it would beat the simple return rates. You don’t have to have your money tied up for longer than 6 months usually.

Vince on January 29, 2014 at 8:25 PM

Vince on January 29, 2014 at 8:25 PM

By the way, it is legal to invest your IRA into real estate.

Vince on January 29, 2014 at 8:27 PM

Is this plan comparable to the Social Security “lock box,” which serves as a slush fund for Dem social engineering?

onlineanalyst on January 29, 2014 at 8:27 PM

Why would anyone trust this lawless socialist-infested government with more money??

If you’ve given up on devaluation risk, a mattress is probably much safer than a “MyRA” because the IRS won’t be getting annual reports on it specifying its contents and location…which enable Washington to plot ways to steal it from you.

landlines on January 29, 2014 at 8:33 PM

I guess this also means TPTB have given up on bailing out their respective brothels Governments via a “Save the world from Global Warming” CO2/Power tax.

WryTrvllr on January 29, 2014 at 8:40 PM

Long time earner, first time saver here.

Murphy9 on January 29, 2014 at 8:41 PM

Government Securities are two mutually exclusive words.

Must hand it to The Fed for coming up with this brilliant Ponzi scheme.

The Ugly American on January 29, 2014 at 8:45 PM

Can I use my EBT card to fund my myRA?

Thanks.

NoPain on January 29, 2014 at 8:13 PM

LOL….

The Ugly American on January 29, 2014 at 8:46 PM

Long time earner, first time saver here.

Murphy9 on January 29, 2014 at 8:41 PM

well, regardless of Vince, Real Estate is at it’s peak. Good luck figuring out where. Maybe a bsement of gold, canned goods, and ammo is not such a bad idea.

The ABCD principle. Anything Bernanke Can’t Destroy.

WryTrvllr on January 29, 2014 at 8:59 PM

MyRA is to savings like Miley Cyrus is to entertainment.

A lot of twerking; no substance.

BobMbx on January 29, 2014 at 9:03 PM

The grand idea, I believe, is simply to encourage saving for retirement even among the poor and working class, especially blacks and Latinos

That’s what unemployment, SSI, Medicaid and SNAP are. Why would they invest if they are already getting paid for not investing and making almost no money?

Patriot Vet on January 29, 2014 at 9:15 PM

Oh, and non-Chinese made solar panels. It’ll take you 25 years to recoup, but it’s all gravy from there.

Not nearly as expensive as you would think either.

Skip all the fancy electronics and high guage copper wiring. Arrange your array to put out 90-120 volts MPP and run those God awful incandescents straight off it. It WILL lower your heating bill. (northern climate here, folks) The bulbs will last 10 years or more (no AC to contend with). CHEAP. Some work. It WILL pay off.

WryTrvllr on January 29, 2014 at 9:17 PM

For an alternate take on this subject:

http://www.zerohedge.com/news/2014-01-29/ira-confiscation-its-happening

Setting up the structure for myRA accounts under the rather benign circumstances BO proposed last night is just the first step.

Once the structure is there…

Conspiracy theory stuff? Yeah, maybe.

climbnjump on January 29, 2014 at 9:21 PM

The lefties have been trying to get their hands on middle class wealth and the middle class for years.

I remember during the Clinton years, when Hillary wanted money to spend for some government program, and wanted to to put IOUs in the IRAs just like the Social Secutirey “trust fund” to pay for it.

Someone had to explain to the Yale Law School graduate that these accounts were private property.

“But the money’s just sitting there!” she replied.

Wethal on January 29, 2014 at 9:22 PM

Oh, and they make DC hot water heater elements for the summer.

WryTrvllr on January 29, 2014 at 9:37 PM

I agree with those above who say it’s a way to steal our current IRAs.

Anything invested in the so-called “securities” of this debt ridden government is a Bad Idea.

sherrimae on January 29, 2014 at 9:55 PM

How about letting us opt out of social security and put that money away in our own retirement plan? No? Well FLUKE OFF THEN!

jawkneemusic on January 29, 2014 at 10:00 PM

Lanceman on January 29, 2014 at 7:49 PM

And I don’t know who you are or where you came from but your rookie mistake is accepting the premise as benevolent.

I have been following Ed since Captain’s Quarters; old, background in finance, PhD in history. Do not trust the President’s economic judgement (thus comment about minimum wage,) but a program as he laid out would benefit best only the very young or wise but cautious, working poor.

A.S.R. on January 29, 2014 at 10:30 PM

Everything this man does is class warfare. This included.

There is no such thing as a risk free guaranteed return debt instrument.

AshleyTKing on January 29, 2014 at 10:56 PM

So is this MyRA to be held by a government agency while it is under $15,000? That seems to be fraught with possible problems since a government agency is not necessarily responsive to the public — they are responsive to Congress which can chew them up but the public can’t do so in any similar fashion.

Heck why not make all individual savings account (held in a person’s name) be tax-free up to a $15,000 balance? Wealthier folks would take advantage because they pay higher taxes but the limited balance puts a limit on that kind of activity, but the flexibility of adding and subtracting from the account would, at least, be attractive to some lower income folks who have less margin for error.

For those who use the easy in/out without increasing their savings balance, well, you wouldn’t have benefitted them in the first place, but the idea is to incentivize those folks who are willing to make the start.

It is a matter of tradeoffs. If the idea is to lessen the risk that someone put badly needed money beyond their reach, it is more more likely they may take the risk.

Russ808 on January 29, 2014 at 10:57 PM

Great post, AP. Seriously, that’s a great explanation of the proposal and its advantages and shortcomings.

Blacksheep on January 29, 2014 at 11:01 PM

working poor.

A.S.R. on January 29, 2014 at 10:30 PM

What the hell is ‘working poor’? That anything like ‘African American’?

Lanceman on January 29, 2014 at 11:23 PM

Anytime Obama starts mentioning IRA I get nervous so no I’m not for this because I don’t trust him. When he says myRA he probably means exactly that. Confiscating our retirement accounts would be the ultimate in income equality in his mind. I keep picturing that skanky ho on You Tube bragging about how she “lovers her some Obamacara” and wants all you white folks to “keep working hard and paying taxes so you can pay for her seven childrens” all the while dressed like a street walker. I can see Obama and company seizing the IRAs of hardworking Americans who have scrimped and saved and been responsible to pay for takers like the ho with the seven childrens (her wording, not mine).

neyney on January 29, 2014 at 11:46 PM

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